Skype is launching a free Wi-Fi service to UK streets that will help brick-and-mortar stores better compete with e-tailers.

Skype has partnered with Wicoms, a hotspot provider, to place Wi-Fi on UK streets as part of the Skype Access programme. Citizens can access the Wi-Fi for free by simply logging in with Skype IDs or email addresses.

Local businesses will be flipping the bill for the Wi-Fi. They'll pay a monthly fee of £9.99 plus VAT for the service and another £49 for the router. However, the router can come free if they sign up in October.

Businesses stand to win in the deal because the free Wi-Fi will attract customers, and each business can send vouchers and discounts directly to customers' mobile phones.

Skype will obviously benefit from the service, as more users will access Skype more often, and customers receive free Wi-Fi, so everyone wins (except customers will have to deal with the annoying ads from businesses).